In order to boost manufacturing and exports of footwear, the Council for Leather Exports (CLE) has urged the government to cut Goods and Services Tax (GST) rate on footwear priced above Rs 1,000 to 12 percent. At present, 5% GST rate is applicable for footwear having a retail sale price up to Rs 1000 per pair, while 18% GST rate is applicable for footwear having a retail sale price exceeding Rs 1000 per pair.
CLE Chairman P R Aqeel Ahmed said “as the sector holds huge potential both for manufacturing and exports, we need support from the government.” Talking about the refund of GST, he said CLE is organising a series of awareness and outreach programmes at all the leather clusters in the country. He noted that the refund of GST duties is happening on time and is helping both big and small exporters to further take new orders from global buyers.
Currently, exports of leather and its products stand at $6 billion. Major export destinations include Europe and the US. Earlier, the commerce minister had unveiled an incentive package of Rs 2,600 crore for the leather and footwear sector in order to boost the exports and creation of jobs in the sector.